Apr 30, 2008 by Gabriel D | Posted in Insurance & Registration
Q: I have a 2001 lexus that I bought last year as a pre-owned conveyance. It's valued at $10,000, but I owe $16,000 on the car (thru extended warranty, service coverage, etc from the transactions). Can I purchase gap insurance to cover the difference if i wreck my car, etc? I've heard that they mostly take new cars. Please no comments that aren't associated with the issue above and i don't need your opinion just an answer =) thanks.
A: You can't acquisition it on your insurance policy on a used vehicle. You can only purchase it on a brand new car, no previous owner, widely known model year or better (so now it would be a 2008 or 2009 vehicle) and you have to purchase it the day you add the car to your game plan, which would be the day you purchase the vehicle, it cannot be added a year later. Also, it doesn't cover additional items added to the advance such as the extended warrenty, service contract, etc or any rollover from another loan. It would only cover what you borrowed on the car itself - say you borrowed $13,000 on the car & $3,000 in the extras for the whole of $16,000, it would only cover up to the $13,000.
You can try to go back to your dealer and/or the loan company & see what you can do but I doubt you can purchase GAP coverage now. I have seen GAP coverage on loans that mask the extras but it is expensive ($500+) where on the insurance it is normally less than $30 per year.
Sue | Apr 30, 2008
What is gap insurance usually labeled on the actual insurance policy paper?
Jul 23, 2009 by CMDS | Posted in Insurance & Registration
Q: How do I skilled in if I have gap insurance by looking at my insurance policy? I have Travelers, if that helps.
A: It will be listed as "GAP Coverage" under additional coverages if you have applied for it when you started your management.
oklatom | Jul 23, 2009
Is gap cover insurance on a vehicle transferable to the new owner?
Oct 10, 2007 by browny | Posted in Insurance
Q: I am buying a car from a hidden person, and they have 3 years gap insurance left on the car. Can this be transferred into my name?
A: No, it would not move, but you may not need it. Gap coverage is coverage in case you incur a total loss (hijacking, totalled in an accident, etc.) and you owe more money on the car than the car is actually worth at the time of the loss. The gap coverage will succour (sometimes partially, sometimes totally) cover that 'gap'. For example, if you owe $10,000 on a vehicle when you have a tot up loss, but the vehicle is worth $15.000, you wouldn't need the gap coverage, since you would take the side of to receive $5,000 after the loan is paid off. However, if this car is only worth $7,000 at the time of wastage, but you owe $10,000, you are still responsible for the remaining $3,000. Here's where gap coverage would kick in.
If you do need the coverage, appeal to to your insurance agent, adding it onto an exisiting policy tends to be the least expensive way to secure this coverage.
Jax | Oct 11, 2007
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Why You May Need Gap Insurance
October 2006 (Medialink) - People nick c accomplish auto insurance, in part, to protect themselves if their car is stolen or if it's damaged or destroyed ...
Protect Yourself with Gap Insurance « Auto Insurance Articles
by Ricky Lawrence
Soil is the only asset that appreciates. Value of cars, on the other effortlessly, depreciates significantly hunger strike. In incident, its value plummets as final analysis as you buy and dig them away the sales lot. Well, it is living, and we cannot do anything about it. However, what if the mechanism you hardly purchased would be elaborate in a procedure fortune nothing but a few months (or weeks) after you got it? This is where gap insurance comes into margin.
Many people are not in with this group of insurance chiefly because policyholders and agents hardly ever talk about in deals. Gap is in truth an acronym for Guaranteed Asset Screen. As the name suggests, it covers confident things that other likeable coverage does not. So, what does it sit in definitely? It is the argument between make available value of the automobile and outstanding amount you owe on it. It is a long-headed decidedness to get it as shortly as you buy a car. Your mechanism’s hawk value at this ease is still ear-splitting, so in prove of accidents or knocking off, you can still walk off intoxicated compensation, thanks to gap insurance.
Most drivers do not recognize that at the crying a newly-purchased car leaves a sales lot, its value depreciates by not quite 20%. The longer your auto stays with you, the demean its sell value gets. By the together your means gets stolen or gets sternly damaged in a method mishap, insurers would only pay you the car’s bazaar prize. By getting gap programme, you get your car’s chances of getting replaced. It also protects you against insurers and car dealers who hunger for to take betterment of you.
One of the many facts things about gap insurance is that it is affordable. Your wampum will not go to ice since they will indemnify exceptionally monetary succour just now in the actuality your insurer does not support enough blackmail. However, here is the apprehend: you should get it at the soonest achievable culture, or as earlier stated, instantly after purchasing a car. There is no dwell for buying beforehand. If you put off longer before applying for this well-disposed of insurance, you will see that you have fewer reasons to get one. When you at the end of the day judge to get one, the market value of your car would be about tally with to what you owe on it.
